Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our User Agreement and Privacy Policy.

Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our Privacy Policy and User Agreement for details.

3.
Introduction
Tech in Asia tracks tech venture funding across Asia. Our data goes back to 2012.
This half-yearly report looks at the most recent developments in the region’s booming tech scene in
terms of funding activity, fast-growing verticals, and exits - and how these fit into the bigger picture.
The Tech in Asia database comprises more than 37,000 tech ventures, with a focus on Southeast Asia,
India, and China. It grows daily.
We also track funding activities in countries, including Japan, South Korea, Taiwan, Pakistan,
Bangladesh, and UAE. As our datasets in each of these countries grows, they will be included as
additional regional clusters in future reports.
Page 3 of 24

4.
H2 2016 Report highlights
A cooling down in tech venture funding was felt across Asia in the second half of last year, with India hit the hardest.
The repercussions of India’s struggles, especially in its ecommerce sector, are becoming very real in 2017, with
several valuation cuts and layoffs.
China still holds a strong lead over all other countries. The number of deals with Chinese startups was almost
double, and the number of investment dollars received four times as high as the top four Asian countries in that time
period combined.
Southeast Asia in H2 2016 shows that it’s writing its own history instead of following India’s and China’s path. For the
first time, the fintech vertical attracted more VC interest than ecommerce. Indonesia defied downturn trends
and drew more investment dollars than in the same period the year before.
Page 4 of 24

6.
Overall deal volume - top 5 countries H2 2016
Not all countries suffered equally.
● In India, the amount invested shrank to almost a
third of the size of H2 2015
● China’s total dollars invested nearly halved
● Singapore’s rose by 20 percent, Japan stayed
level
● Indonesia was H2 2016’s winner with a whopping
26x increase in dollars invested despite a slight
drop in the number of deals
China still holds massive lead in the region. In H2 2016,
startups here saw almost double the number of deals and
attracted four times the number of dollars invested in the
succeeding top four Asian countries combined.
Page 6 of 24

9.
● Series A fundings are the most common in
China, peaking at more than 660 deals
recorded in 2015
● In line with Asia-wide funding cooldown,
the number of seed and series A rounds
dropped last year. The drop was especially
significant for seed-stage startups
● Year of the bridge rounds: Bridge rounds
were on the rise, indicative of a more
difficult funding climate
Startup maturity - China
Page 9 of 24

11.
● In India, seed-stage startups are dominant
● Growth in seed-stage deals leveled off,
while series A saw a decline
● Same as in China, the uncertain funding
climate led to a rise in bridge rounds as
these tend to be easier to close and help
startups through a downturn
Startup maturity - India
Page 11 of 24

12.
● In India saw an early boom in median deal
size specifically in the series A stage in
2013
● While the number of seed deals in India is
huge, the median deal size remains more or
less stable - and lower than in Southeast
Asia
Startup maturity - India
Page 12 of 24

13.
● In Southeast Asia, seed-stage deals
outnumber all others and are still growing
● The number of deals in other stages
continues to grow too, with less growth in
series A deals but a rise bridge deals
Startup maturity - Southeast Asia
Page 13 of 24

14.
● Median deal sized continued to grow in
2016, with the exception of late stage deals
● The US$66 million series B round raised by
Lazada in 2012 is an outlier. It was one of
only two series B deals that year, and the
other startup didn’t disclose the amount
raised
Startup maturity - Southeast Asia
Page 14 of 24

15.
● Ecommerce continued to attract the most
deals in China last year. It’s been the
leading category for the past five years
● Fintech is the second most relevant
category
Top performing verticals - China
Page 15 of 24

17.
● India’s ecommerce vertical has
continuously attracted the most tech
venture deals since 2012.
● Unlike in China and Southeast Asia,
fintech in India hasn’t emerged as one of
the two top performing verticals.
Health-related startups play a bigger role
than in the other regions.
Top performing verticals - India
Page 17 of 24

19.
● Fintech’s rapid rise: In 2016, fintech took
over as the vertical attracting most deals
in Southeast Asia
● Health and education have not established
themselves as top verticals for tech
venture funding, unlike in India.
Top performing verticals - Southeast Asia
Page 19 of 24

21.
● Exits (including M&A and IPOs) are
growing, yet not with the exponential
trajectory of deal activity
● The exit ratio in Asia overall has remained
relatively stable. In 2016, there was one
exit for roughly every 14 deals
Exit ratio
Page 21 of 24

23.
Methodology
The Tech in Asia database comprises more than 37,000 tech ventures, with a focus on Southeast Asia, India, and
China. It grows daily.
We scan international and local news, database entries, startup and VC firms’ websites for updates. However, some
startups choose not disclose their fundraising activity, which means they do not factor into this report. Southeast Asian
tech startups, in particular, tend to not disclose the amount of funds raised.
Page 23 of 24